If someone borrows in order to buy today by Dr. Robert Murphy @Mises

Question 49 / 96: If someone borrows in order to buy today rather than waiting to pay cash, is this an example of uneconomical behavior?

Answer:

No, it simply illustrates the person's preferences. Just as one

person might be willing to pay $50 on a juicy steak, while

another person would regard this as absurd, so too might someone

be willing to pay a high interest rate in order to consume

earlier rather than later. There is nothing intrinsically irrational

or uneconomical about such a decision, which couldn't be

applied just as well to other consumer decisions.

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https://www.jobilize.com/capitalism-the-market-economy-by-dr-robert-murphy-mises

Capitalism: The Market Economy

Access: Public Peer Review

Dr.Robert MurphyAssociated Scholar

Mises Institute

USA

Attribution: Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY

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